The bill passed the House of Representatives with the backing of the ruling Liberal Democratic Party, its junior coalition partner Komeito, and Nippon Ishin (Japan Innovation Party).
“Integrated resorts will create new employment and culture, bolstering Japan’s international competitive power,” prime minister Shinzo Abe said on 1 June. Gaming analysts have estimated that Japan’s casino market could be worth about US$16bn, nearly half of Macau’s yearly revenues but US$5bn more than Las Vegas.
The bill will now go before the Diet’s upper chamber, the House of Councillors, for debate. The current legislative session was set to close on 20 June, but the government has extended the 150- day ordinary Diet session until 22 July, in order to facilitate the bill’s passage.
Under the new legislation, IRs will initially be restricted to only three sites, although this figure will reviewed seven years after the first approvals are granted. Locals, as well as foreign residents of Japan, will be required to pay a US$ 55 admission fee, and are permitted up to three visits per week, capped at a maximum 10 visits a month, while overseas visitors can enter free of charge.
The size of the casino floor will be limited to three percent or less of the total IR area, while operators will pay a 30 percent gaming tax to the central and local governments.
A number of major casino operators have affirmed that they are prepared to spend US$10bn on IRs in Tokyo and Osaka. All six Macau concessionaires through their parent companies – Galaxy Entertainment, Melco Resorts, MGM Resorts International, Las Vegas Sands, SJM Holdings and Wynn Resorts – have set up offices in Japan seeking a foothold in the new market. Meanwhile, Genting Singapore – part of Malaysia’s Genting Group – and US-based Caesars Entertainment Corp have also thrown their hats into the ring, and Japanese gaming machine manufacturers Universal and Sega Sammy are reportedly interested in participating in an integrated resort partnership.
Despite the new legislation’s forward progress, a number of aspects of Japan’s new casino policy remain undefined, including tax obligations on winnings.
Source: GMB / Casino-review
